(Bloomberg) -- Starbucks Corp. shares surged the most since May 2022 after the coffee giant beat sales expectations on resilient demand for its iced lattes, and reined in a key annual growth target that Wall Street expected it to have a hard time meeting.

Same-store sales rose 8% in the quarter through Oct. 1, surpassing the 6.3% average analyst estimate. A higher number of transactions and larger orders drove the increase, according to results released Thursday. The US and China did better than expected by that metric, which tracks performance at stores open for more than a year.

That strength tracks with the results turned in by several other food-and-drink companies so far this earnings season. While shoppers are starting to retreat from big-ticket purchases of things like boats and refrigerators, Chipotle Mexican Grill Inc., PepsiCo Inc., Coca-Cola Co. and other purveyors of more-affordable indulgences have held up even amid the pinch of high interest rates and continued inflation.

Still, Starbucks said it now anticipates global and US same-store sales to rise by 5% to 7% in the next year, retrenching from a more aggressive outlook provided last fall. The cut likely comes as a relief to investors who thought the goal was too high from the get-go as worries mount about the financial health of US consumers and China’s slow economic recovery. Analysts polled by Bloomberg as of Wednesday estimated the company would fall short of its prior target.

The updated range gives the chain a “more balanced approach” to driving earnings growth, Chief Financial Officer Rachel Ruggeri said Thursday on a call with analysts. Starbucks is still looking for annual revenue growth of 10% to 12% — though now at the lower end — and for earnings per share to climb by 15% to 20%. It will lean on new store growth and several efficiency initiatives to meet its goals, among other drivers.

“We remain confident in the momentum throughout our business and headroom globally,” Chief Executive Officer Laxman Narasimhan said in the statement. 

The shares jumped as much as 11% in New York trading. The stock had slid 7.9% this year through Wednesday’s close, trailing the 10% advance of the S&P 500 Index.

“What’s really reassuring to investors is that even on a slightly more modest comp gain — 5% to 7% on an absolute base, those are still really good numbers — they can still yield that 15% to 20%,” said Sharon Zackfia, an analyst at William Blair & Co. “That’s what the Street was looking for, for reassurance. The gravy on top of all of this is China just looking really solid in the quarter and in the outlook.”

Starbucks’ quarterly revenue was $9.4 billion, topping expectations. Earnings were $1.06 a share, ahead of estimates. The chain’s recent strategies to attract customers have included an early rollout of its fall lineup and new products such as frozen refreshers. Its customers have also been increasingly ordering more food, fattening transaction sizes. 

In addition, Starbucks has been seeking to improve speed of service. The initiatives have fueled revenue growth, increased efficiency and boosted margins, Narasimhan said Thursday. The CEO is expected to provide an update on the strategy at an event at 4 p.m. New York in his first investor day without founder Howard Schultz by his side.

(Updates with shares starting in first paragraph, analyst comment in eighth paragraph.)

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